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GST/HST reduction a boost to economy - CFIB

TORONTO, Dec. 31 /CNW/ - Tomorrow's reduction to GST and HST rates will
provide a much-needed boost to the Canadian economy, according to the Canadian
Federation of Independent Business.
"The one-percentage point cut puts over $5 billion dollars back into the
national economy, at a time when sales are traditionally sluggish in many
sectors," CFIB President Catherine Swift noted.
"Our members' number one priority is tax reduction of all kinds," she
continued. "They want to see more money left in Canadians' pockets."
When the GST/HST rate was initially cut by one percentage point in July
2006, surveys by CFIB of its members before and after the rate reduction
showed the majority of businesses handled the transition smoothly.
"Our research suggests that our members will have these changes well in
hand," Swift said.
CFIB has made an updated version of its GST/HST Checklist for business,
prepared together with the Canada Revenue Agency, available at www.cfib.ca.
The federal government announced in October 2007 that the GST would be
cut from 6 to 5 per cent starting Jan. 1, 2008, while the HST rate in Nova
Scotia, New Brunswick, and Newfoundland and Labrador will fall from 14 to 13
per cent.